03 October 2012

Developer Frasers Centrepoint has
created a new brand for its collection of dual-key units, on the back of strong
demand.

These homes have several uses, such
as allowing grandparents to live in the same dwelling as the rest of the family
but with a separate key and entrance.

Called Trio by Frasers, the brand,
launched Tuesday, will focus on developing and marketing the dual-key concept.

Trio refers to three options the
units can be used for: multi-generational living, leasing out the space or
using it as a home office.

They have been on offer since 2009,
when it launched Caspian at Lakeside and 8@Woodleigh.

Several recent launches, such as
River Isles and executive condo (EC) 1 Canberra, also boast the units. Analysts
say they can cost about 5 per cent more than ordinary units. Typically, studio
apartments are attached to one, two, three, four or five-bedders.

Analysts said the concept is still
being tested by developers.

“It is also not easy to find typical
HDB upgraders with sufficient affordability to purchase large units in course
of overall run-up in prices, hence developers are cautious in providing
substantiallarge units like dual-keys," one analyst said while another analyst
pointed out that developers are still cautious and introducing (the units) in
small quantities because not everyone wants them... Some have even asked for
the wall to be knocked down.

Prices of resale strata offices
surged in the third quarter, as a shortage of new space led buyers to look at
older developments, said a report.

There was a similar trend in the
number of transactions, with new-office sales falling as a share of completed
deals.

New strata-titled offices made up 72
per cent of the 686 transactions in the first six months of the year, but that
fell to just 21 per cent in the three months to 30 September, when total sales
of 97 offices were recorded.

This was largely due to the limited
supply of new office space following the initial high sales activity of new
projects in the first six months.

International Plaza and The Central
had the highest number of recorded transactions in the resale market, with both
notching up healthy price gains in the third quarter.

Average prices rose by 12.4 per cent
to $2,440 psf from the second to the third quarter, and again, when the sales
of similarly sized units were compared, the average price increase moderated to
4.2 per cent.

The interest generated from new
developments has led to a spillover effect that has pulled up resale prices.

This, combined with persistently low
interest rates, might lead to increased interest in real estate from cash-rich
investors, particularly for commercial property as a hedge against inflation.

"However, actual demand for
office space is waning, with the rental market staying relatively flat in the
third quarter. Achievable yields will start to decline as prices continue to
increase," the report said.

"We foresee prices of strata
offices to moderate towards end-2012, with sustained interest for resale office
spaces at prime locations," the report said. "Overall average prices
for strata offices in the resale market could increase by 4 to 5 per cent in
the fourth quarter, which would translate to a 14 to 15 per cent increase for
the whole of 2012."